Professional Documents
Culture Documents
Sample Report
Sample Report
Sample Report
SUBMITTED BY
UNDER GUIDANCE OF
Prof. Guruprasad Muthuseshan
1
DECLARATION
This is to declare that I Aayush Mishra, student of Universal Business School, Mumbai (Karjat),
Mention batch AY 2020-2021, has given original data and information to the best of my
knowledge in the project report titled Distribution Development for Nestle RTD Products is a
record of independent work carried out by me under the guidance and supervision of Prof.
Guruprasad towards the partial fulfilment of requirement for the PGDM course.
I also agree in principal not to share the vital information with any other person outside the
organization and that I have not submitted it for any award or any other title, degree or diploma.
Date: 24/07/2020
Place: Mumbai (Karjat)
Name: Students Name
Batch: PGDM/6
Roll No: 1904
Specialization: Marketing
2
3
4
5
CERTIFICATE
This is to certify that the project entitled “Distribution Development for Nestle RTD Products”,
submitted to Universal Business School, Mumbai (Karjat) in the partial fulfilment of the
requirements for the award of the Post Graduate Diploma in Management (PGDM) embodies the
results of bonafide project work carried out by Aayush Mishra under the guidance and supervision
of Prof. Guruprasad
To the best of my knowledge the results embodied in this project have not been submitted to any
other university or institute for the award of Degree or Diploma. The assistance and help received
during the course of this investigation has been duly acknowledged.
Date: 24/07/2020
Place: Mumbai (Karjat)
6
Acknowledgement
It gives me immense pleasure to present this Concurrent Project Report. However, it would not
have been possible without the help and support of all the team members of Nestle
I would like to thank my Company guide Rahul Madotiya and Faculty guide Prof.
Guruprasad for guiding me in my tenure of internship on “Distribution Development for
Nestle RTD Products”. Without their support and guidance, I wouldn’t have come so far to
prepare this report.
I would like to express my thankfulness to Placement team of Universal Business School, who
gave me this great opportunity to work on this Interesting project.
I am also grateful to my loving parents and my kind friends whose prayers, affection and support
are always a source of encouragement. Their suggestions and supply of information were really
very valuable and helpful to me. Their continuous encouragement and support helped me for
completing this project successfully.
Batch: PGDM/6
Specialization: Marketing
7
Table of Contents
Sr. no. Topic Page no.
1. EXECUTIVE SUMMARY 10
2. Part A: Industry Profile 12
3. Company Profile 16
4. Background and Inception of the company 17
5. Nature of business carried out 19
6. Vision and Mission Statement 19
7. Products 20
8 Competitor’s Landscape 27
9. Achievements and Awards 29
10. Part B 30
11. Work-Flow Model 31
12. PESTLE Analysis 32
13. SWOT Analysis 34
14. Industry Key Success factors 35
15. Challenges & Issues before the company / Product 36
16. Research 38
17. Literature Review 39
18. Recent News 40
19. Research and Analysis 41
20. Key Objectives 42
21. Sample Design 43
22. Data Analysis 45
23. Learning Experience 52
24. Questionnaire 54
25. Bibliography 58
8
EXECUTIVE SUMMARY
9
During the tenure of this internship, I was appointed as a sales representative for Nestle Ready to
Drink (RTD) products and was responsible for Distribution Development of these products by
creating new channel partners for the company. The product falls under Food and Beverage
segment of the FMCG industry and summer season is the prime time for its sales and hence
learning about consumer behavior and buying behavior was easy.
When appointed as a brand promoter I acquired many skills and abilities such as
• Negotiation
• Relationship management
• Conflict management
• Sales analysis
• Consumer Analysis
• Sales closer
• Sales target
During the time of Internship, I have also collected data from the customer regarding their
buying behavior, brand awareness etc. to know the consumer buying behavior and what are the
attributes that affects consumer’s decision while purchasing this product.
The data was collected from 150 people and hence put in a statistical format to understand the
consumer buying behavior and the brand awareness.
Nestle provides superior quality with competitive pricing strategy but still needs to improve its
condition in terms of marketing, packaging and pricing to become the market leader in the RTD
cold coffee/tea segment.
10
Part A:
Industry Profile
11
Fast-moving consumer goods (FMCG)
FMCG are nondurable goods, or goods that are consumed at a rapid pace and have a short lifespan.
These products are consumed daily by every strata of the society irrespective of income group,
social class, age group etc. The 3 main segments of FMCG are-
➢ Food and Beverage (F&B) - This segment includes health beverages, bakery products,
staples/cereals, snacks, ice cream, tea/coffee/soft drinks, chocolates, dairy products,
processed fruits and vegetables, and branded flour.
➢ Household and personal care- This includes hair care, oral care, cosmetics/deodorants,
skin care, perfumes, feminine hygiene and paper products, fabric wash, and household
cleaners.
The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector of Indian economy
and a key contributor in Nation’s GDP. This sector is expected to grow at 9-10 per cent in 2020
and 2021. Accounting for 50 per cent of the overall market, household and personal care is the
leading segment followed by healthcare (31 percent) and food and beverages (F&B) (19 per cent)
of market share. (India Brand Equity Foundation, 2020).
The presence of domestic and multinational companies and unorganized sector in this industry
makes it a highly competitive sector. Firms like ITC, Hindustan Unilever, Nestle and Marico are
the major players in the industry.
Urban segment, contributing to a revenue share of around 55 per cent, is the largest contributor to
the overall revenue generated by the FMCG sector in India. Also, growing at a rapid pace, Rural
segment accounted for a revenue share of 45 per cent in the overall revenues in FMCG sector in
India. FMCG products account for 50 per cent of total rural spending. (India Brand Equity
Foundation, 2020)
12
Since the product in consideration under this report in a Milk based Ready to Drink Cold Coffee
by Nestle which comes under the subsection of Food and Beverage (F&B), the focus of this report
is on the F&B section out of the entire FMCG space.
Types of
Beverages
Alcoholic Non-alcoholic
beverages beverages
13
In India, Food and Beverage Industry is worth $400 billion and has been considered as a priority
sector under “Make in India” initiative. The Indian food and beverage market is projected to
display a robust growth represented by a CAGR of 7.2% during 2019 - 2024. (Azoth Analytics,
2019)
Growing youth population, rising income and convenience are the biggest growth drivers of the
Ready to Drink beverage market. Millennials are preferring to socialize over a drink. The market
is growing at 20-23% and is expected become three times the current size by 2020.
Under RTD market, there is a growing potential for milk based RTDs like milkshake, cold coffee,
lassi, butter milk etc. as consumers are becoming health conscious and preferring to drink
something healthy instead of carbonated beverages which contains a lot of sugar. Companies like
Amul and Nestle has captured this segment of the market by dominating the market share
completely.
14
Company Profile
15
Nestlé SA, Switzerland is considered to be the world’s largest food and beverages conglomerate.
NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland with headquartered in Gurgaon,
Haryana and is one of the biggest players in FMCG segment. The company has evolved from a
food and beverage company to a respected, trustworthy food, beverage, nutrition, health and
wellness company. Company’s tagline “Good Food, Good Life” encapsulates this objective.
The food business of the company incorporates product lines such as milk products and nutrition,
beverages, ready to eat food products and cooking aid, confectionery and chocolates. The most
prominent brands of the company are Nescafe, Maggi, Kit Kat, Milky bar, Milo, Bar-One, Nestea
and Milkmaid. It has presence in 86 countries around the world with 511 factories. The company
employs a total of 335 000 employees globally and we market our product in over 150 countries.
In India the company has 8 manufacturing facilities and four branch offices which are spread
according to the concerned region situated in Delhi, Mumbai, Chennai and Kolkata. The company
is recognized among the ‘most respected company’ and one of the top wealth creater in Indian
share market.
16
During the world war in 1914, the demand for condensed milk and chocolate but limits on cross-
border trade and a shortage of raw materials and hamper production for Nestlé & Anglo-Swiss.
The company overcame this problem by expanding its production facilities in the US and
Australia, and by the end of the war it has 40 factories.
These factories were established in developing countries, particularly Latin America. Ironically,
the war helped with the introduction of the company's newest product, Nescafé, which was a staple
drink of the US military. Nestlé's production and sales rose in the wartime economy. The company
witnessed a tremendous growth and then began the new era of expansion and acquisition for the
company. In 1947 came the merger with Maggi seasonings and soups. In the same year, Nestlé
diversified beyond food and drink, and became a minority shareholder in global cosmetics
company L’Oréal.
After independence, the emphasis of India’s economic policy was on local production. Identifying
this opportunity, Nestle formed a company in India and started its first plant in Moga, Punjab, in
1961, where the company helped to regional farmers to leave their mark in the milk economy of
their country by educating them on increasing milk yield, dairy farming, scientific crop
management,
By setting up milk collection centers in this region, the company ensured prompt collection of milk
with timely ang regular payment to the farmers which instilled a sense of confidence among the
community and the company became a trusted brand in this region.
Over the years, Nestle India became a major player in processed foods and built strong brands like
MAGGI, NESCAFE, CERELAC, LACTOGEN, KITKAT and POLO. Nestle is the biggest
shareholder in market in various segments of the FMCG sector such as noodles and sauces
[MAGGI], instant coffee [NESCAFE] and weaning foods. Nestle products are not only sold across
India but are also exported to USA, Japan, Russia, Hungary, and several other countries.
Among these, some prominent are products Nescafe and Lactogen, and select culinary products to
meet the demand of the ethnic Indian population living abroad. For three continuous years [from
1999-2000 to 2001- 2002], Nestle India was recognized with the top Exporter Award for export
of Instant Coffee, and for export of all coffees to Russia and CIS Countries.
17
The culture of continuous improvement, innovation and renovation, and the thrust on value-for-
money and affordability have been the major growth driver and enabled the company to focus on
adding value for the consumer. The company emphasized on improving product availability,
operational efficiency and visibility and initiated efforts to make its products more relevant to the
consumers. Supporting this was the distribution of smaller stock keeping units (SKUs).
In 1986 the company launched Nespresso with a simple idea: enable anyone to create a perfect
cup of coffee, just like a skilled Barrista. Later in 1988, Nestlé bought UK confectionery company
Rowntree Mackintosh, adding brands including KitKat, After Eight and Smarties to its portfolio.
In 2003, Nestle acquired Dreyer’s Grand Ice Cream expanding its ice cream business.
In 2016, the company launched Ready to Drink Cold Coffee in 3 different variants in tetra packs,
later in 2018, these coffees were launched in Cans as well.
On 20 March 2017, Nestle India announced the launch of MILO Ready to Drink cocoa malt milk
beverage targeting children. This product contains less than 10gm sugar per tetra pack.
Over the years, Nestle has expanded its business in Health care as well as skin care sector and
growing strong.
➢ Vision Statement
18
To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved
shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier
selling preferred products. (Nestlé , 2019)
Products
Nestle’s product mix has one of the widest and deepest product lines among all the food and
beverages companies across the word with some of the most trusted brands like Maggi, KitKat
and Nescafe. Let’s take a deep dive into the companies most successful products and brands.
NESCAFÉ
(Nestle, 2020)
It is one of the world’s most loved coffee brands and has made itself known to as many as six
generations. This beverage product line consists of brands like-
• Nestea
• Latte
• Sunrise
• Gold.
Over the past 75 years, NESCAFÉ has grown on the commitment to a promise- to maximize the
enjoyment and ease of preparing a cup of coffee. The success of this product line is based on
breakthrough innovation and a strong commitment towards enhancing the coffee experience of the
consumers.
19
Breakfast Cereals
(Nestle, 2020)
Nestlé Breakfast Cereals has been a part of mornings in over 130 countries around the globe. With
a commitment to live by the company’s tag line “Good Food, Good Life” and provide its customers
with healthy options for breakfast.
These products have star ingredient ‘Whole Grains’ that contains Fiber, Vitamin D, Calcium and
B-Vitamins. Nutritious and delicious at the same time.
The company sells cereals under the brand names-
• Nestle Nesplus
• KoKo Crunchy
(Nestle, 2020)
20
NESTLÉ has applied the concept of Multiple Branding in this product line and have different
brands of chocolates in its portfolio. KITKAT is one of the most successful brands in the world
and every year over 12 billion NESTLÉ KITKAT fingers are consumed around the globe. (Nestle,
2020). Other prominent brands under this product line are
• Munch
• Milkybar
• Bar-one.
• Eclairs
• Polo
Foods
(Nestle, 2020)
Nestle has successfully applied the concept of Brand Extension by extending its most successful
brand name, Maggi to various product categories like-
• Maggi 2 Noodles
i) Nutri-licious
ii) Fusion
iii) Cappa Noodles
• Maggi Ketchup
• Maggi Cooking Aids
• Maggi Pasta
This brand contributes highest in the overall sales of the company across the globe. Maggi noodles
is the highest selling product of the company and has the lion’s share in the market.
21
Nutrition
(Nestle, 2020)
The company applies the concept of Multiple Branding in this category. Nestlé India has a wide
portfolio for Milk Products and Nutrition. In fact, this was the first product that was marketed by
Henri Nestle which was considered as a break-through. This product category has brands like-
• Ceregrow
• Nangrow
• Lactogen
Dairy
(Nestle, 2020)
Nestle has a wide rand of dairy products like Ready to Drink (RTD) Cold Coffee, Yogurt,
Milkmaid, Milk, Buttermilk, Raita, Dahi. These products are sold under the brands like-
• Nestle a+
• Nescafe
• Milkmaid
22
Products in focus
During the tenure of this internship, the objective was “Distribution Development of Nescafe
Ready to Drink (RTD) Products” which is sold under Nescafe Brand. The Products is focus are
Nescafe RTD Cold Coffee and Nestea.
• Nescafe Cold Coffee- With the preposition of providing consumers ready to drink
coffee with thick, velvety smoothness. This product was positioned as a perfect chill buddy
on a hot, hectic day. The company applied Brand Extension and launched the product in
2016, in 3 variants in tetra pack-
23
➢ Price Point-
Price
Variant Tetra pack (180ml) Can (180ml)
Nescafe Chilled Latte Rs. 35 Rs. 50
Nescafe Intense Cafe Rs. 35 Rs. 50
Nescafe Hazelnut Rs. 35 -
• The product has a shelf life of 180 days and is made from Robusta Beans which are
grown in South India.
• 80% milk base that gives a thick consistency to the drink.
• Sturdy Tetra pack and Can packaging prevent the product from pilferage.
➢ Nestea (Iced Tea)- It infuses tea extracts with a tangy lemon and peach flavor.
Variant Price
24
Go to Market Strategy-
Cold beverages are an impulse purchase product among teens & youth and thus availability at key
touchpoints is important. Thus, the strategy is to engage youth with Ready to Drink products at the
point where the brand has spot for reaching out to the right mix of target audience. This target
audience comprises of-
• Teens & Youth
• Age group: 16 to 28
• Students & Young Professionals
• Health Conscious people
• Out of Home Consumers
Such target audience is majorly found at educational institutes, corporate offices, transportation
touch points like bus stand, railway stations.
Hence, the focus area for the sale of this product were-
Café &
Educational
Universities
Institutes Canteen
Corporate Hospitals
Colleges Offices Canteens
25
Path to Conversion
Competitor’s Landscape
The global ready to drink (RTD) tea and coffee market size was estimated at USD 75.25 billion in
2016, growing at a CAGR of 5.6% from 2017 to 2024. (Grand View Research, 2018). The market
is highly competitive in nature and is, therefore, likely to witness new product development as one
of the most commonly adopted strategies. Currently, Nestle is directly competing in cold coffee
segment with companies like Amul, Cevins, Starbucks and Cream Bell in the market.
➢ Packaging Insights-
PET Bottle emerged as a dominant segment accounting for 31.7% of the total industry revenue.
(Grand View Research, 2018). Ease of handling and low cost of manufacturing, reusability and
recycling are the major growth drivers for this type of packaging. These can be moulded in
different shapes and are available in may colours which prompts to a large number of
manufacturers adopting this type of packing. Amul holds the edge over nestle in this segment with
a lower price point.
Canned packaging was the second largest segment that accounted for 27.9% of the revenue share.
(Grand View Research, 2018). Enhance product shelf-life and flavour preservation is the reason
behind this growth. As it improves the brand image of the product in the minds of the consumers,
26
the manufacturers also prefer canned packaging. Nestle faces a tough competition from Amul in
this packaging type.
Glass Bottle owing to its recyclability and reusability property, this segment is expected to
witness the fastest growth rate over the projected period. This packaging type enables brands to
create greater impact in terms of quality of the product in the minds on consumers and improve
their brand identity. Amul is the only company that sells cold coffee in class bottles in regular
price range.
➢ Pricing Insight
The premium price segment emerged as a dominant segment accounting for 36.9% of the
revenue share. (Grand View Research, 2018). As manufacturers are introduce new flavors and
trying to capitalize on premium products comprising these flavors the demand is expected to grow.
The regular price segment was the second-largest segment that accounted for 36.2% of the total
revenue share. (Grand View Research, 2018). This segment products enable the companies to cater
to a large number of customers.
The demand for RTD tea and coffee is moderate and expected to grow gradually over the forecast
period
Here is a side by side comparison of Nestle’s product with its competitors in terms of pricing,
packaging type and quantity-
Price Rs. 35/ 50 Rs. 25/30 Rs. 30 Rs. 25 Rs. 300 and above
Packaging Tetra pack/ PET, Glass PET Bottle Tetra Pack Glass Bottle
Can Bottle/ Can
Shelf Life 180 days 270 days 180 days 270 days 230 days
Since cold beverages are an impulse purchase product, Nestle’s RTD Cold Coffee has to indirectly
compete with RTD milk shakes also. In this segment, Nestle is competing with brands like
Hershey’s, Cavin’s, and Britannia.
27
Achievements and Awards-
2016 KITKAT India won the first edition of the Twitter Aviator Awards in 2016
2014 MAGGI amongst the Top 5 in Brand Equity’s ‘Most Trusted Brands’
2014 Nanjangud factory receives Karnataka State Export Excellence Award for the
FY 2013-14
2014 NESTLÉ KITKAT and NESTLÉ EVERYDAY win Gold and Bronze at Goa
Fest 2014
2013 Maggi ranked amongst Top 10 Most Trusted Brands and No. 1 Food Brand at
ET Brand Equity Survey
28
Part B
29
Work-Flow Model-
Manufacturing Unit
Retailor
Customer
The sales funnel starts from manufacturing unit where product was produced. From here, the
product is passed on to carrying and forwarding agent, also known as regional depo. Till this point,
there is no transfer of ownership involved and the ownership of the products lies with the company.
Depending upon the orders raised from the market, the distributor places the order at the depo from
where product is transferred to distributor or super stockist. This is the point where the ownership
of the product is transferred for the first time. Then onwards, the distributor transfers the products
to actual point of sale i.e. retailor where the transfer of ownership takes place for the second time
in the entire sales funnel.
At the bottom of the funnel, the product is sold to the end consumer
30
PESTLE Analysis-
A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces an
organization interacts with. The letters stand for Political, Economic, Social, Technological,
Environmental and Legal. It is fundamental to conduct a situational analysis to identify changes in
the macro-environment before any kind of strategy or tactical plan can be implemented.
Organizations are able to differentiate from the competition and create a competitive advantage if
they successfully monitor and respond to changes in the macro-environment before-hand.
Here is the PESTLE analysis of Nestle-
1. Political- Nestlé operates in more than 194 countries which makes it open to different
kinds of political systems and makes it vulnerable at the same time. Interaction with
diverse political environment can be challenging for multinational organizations because
it can throw up political bottlenecks in the form of political instability or a tough regulatory
environment that can hinder business development. Hence, Nestle faces the following
political challenges-
• Changing and unstandardized regulation on food standards and marketing actions.
• Stability of government in new emerging economies.
• Changing global regulations – standardized practice yet adaptation to different
political forces.
2. Economic- for global multinational firms like Nestlé operating in lots of countries,
one of the biggest economic issues is foreign exchange swings. Foreign-exchange swings
in 2016, for instance, resulted in a foreign exchange impact of –1.6% on group revenues
even though comparative revenue from the previous year increased by 0.8%. (Nestle,
2018). Nestle has to deal with the following economic factors-
• Keeping up with changing inflation, economic growth rates and income levels.
• Changing consumer’s expenditure patterns, rise of the price conscious consumer.
• Increasing price of raw material which makes it important to source from sustainable
suppliers.
31
4. Technological- Technology is evolving at such rapid pace that its almost impossible
for companies to adapt it with the same as that of its evolution. These changes bring both
opportunities as well as threats for the companies. When it comes to the technological
factors affecting Nestlé in the macro environment, it is the digital revolution that affects
the company most at global scale. For legacy firms such as Nestle, PepsiCo or Coca Cola,
all these technologies are already disrupting the food and beverage industry and, the
challenge is either risk being overtaken by new players or respond with new capabilities
that can capitalize on the opportunities digital brings. Some other technological challenges
are-
• Innovation driven by technological developments.
• E-commerce as a platform for development.
32
Nestle’s SWOT Analysis-
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and hence, SWOT Analysis
is a tool for assessing these four aspects of a business. It is used for giving an organization a
competitive advantage and make the most of their resources. It reduces the chances of failure, by
understanding where they are lacking, and eliminating hazards that would otherwise catch you
unawares.
Here is a SWOT analysis of Nestle-
33
Industry Key Success factors-
Food and Beverage industry along with FMCG space is rapidly growing as the revenue of FMCG
sector reached Rs 3.4 lakh crore (US$ 52.8 billion) in FY17 and are estimated to reach US$ 103.7
billion in 2020. (India Brand Equity Foundation, 2020). As per a report by India Brand Equity
Foundation, this growth is largely driven by the following factors-
➢ Easy excess-
• The accessibility of desired product to customers has become more convenient with the
help of internet and different channels of sales. This has made the Availability of
products has become way easier as at required time and place.
• Online platforms like Gofers, Swiggi, Zomato, Food Panda and Big Basket has made
F&B products more readily available.
➢ Rural Consumption-
• There is an increased demand for branded products in rural India led by a combination
of increase in income and higher aspiration levels. This has resulted in increase in rural
consumption.
• There is huge potential in untapped rural market which is now being explored.
34
Challenges & Issues before the Company / Product-
• Lack of product visibility due to lack of infrastructure (Visicooler) –
During the tenure of this internship and executing B2B sales, it was observed that majority of the
visicoolers in the market that are available with the retailors are provided by either Pepsi or Coca
Cola. These companies do not allow products from other companies to be kept in these coolers.
To some extent, this problem can be sorted out if the retailor and the sales representative have
good repo and the retailors allow companies other than Pepsi and Coke to keep their products in
these visicoolers. But during summer season, these two company have their peak season (which
happens to be the peak season for Nestle RTD also) and consequently, push a lot of product in the
market. If a retailor has availability of visicooler provided by any company, it gives company the
power to push their products in the market.
During peak season, these company has these coolers stacked up to the brim with their products
and doesn’t allow products from other companies to be kept in their assets. However, a retailor
needs to keep assortment from other companies also and hence as a goodwill practice, one shelf is
given to the retailor but normally, this shelf is at the lowest level in the cooler. The most desired
spot for a product to be visible is at the eye level of the customer. At the same time this shelf is
filled with products of many companies. This makes the visibility of the product in the market very
difficult and since cold beverage is an impulse purchase product, it is important for the company
to increase the visibility of the product at the point of sale.
Thus, the company needs to invest in building up the infrastructure or branding at these points of
sale so that the visibility for these products can be improved.
• Higher price-
As reflected in the pricing insights section of this report, the product has the highest price (Rs.35)
and lowest quantity (180ml) in RTD cold coffee range in comparison to its competitors due to
which retailors are of the opinion that customer do not prefer to buy such expensive product.
35
• Packaging-
The product comes in tetra pack at Rs. 35 price point and in can at Rs. 50 price point. However,
the competitor’s products are available in PET/Glass bottle or Cans at a lower price point. As
packaging create greater impact in terms of quality of the product in the minds on consumers and
improve their brand identity, a PET/Glass Bottle or Can looks much more attractive than a tetra
pack. This is one of the reason consumer’s prefer product with attractive packaging while showing
impulsive purchasing behavior.
36
Research
37
Literature Review-
(Albayrak & Aslan, 2001), “According to the report, with the exception of cleaning products,
consumers' loyalty to private brand products was found to have increased for products in all
categories. Despite the growing demand for private brand products, consumers have different
reasons for their preferences that are sensitive to product type and price, and the socio-economic
status of consumers”.
(Jack & Rose, 2000) “It would be difficult and almost impossible to create quantitative variables
to describe the overall appearances of the main characters combining varying views (e.g., price,
taste, quality, hygiene etc.) which may have a significant impact on consumers' preferences.”
(Jain, 2012) “Discussed about major players offering different types of tea, in different parts of the
country, with special focus on quality perception under specific demographic region. Major
players are offering different types of tea in different parts of the country with a focus on the quality
perception of the particular demography”.
(Monirul & Han, 2012) states “the demand of coffee is more than tea and earning good amount of
profit. It is assumed that about 20 billion cups of hot drinks are sold every year”.
(Dr.Shendge, 2012) “Preference (or "taste") is a concept, used in the social sciences, particularly
economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank
ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility
they provide. More generally, it can be seen as a source of motivation. In cognitive sciences,
individual preferences enable choice of objectives/goals”.
(Vakhariya S & Chopde, 2011) “Private labels in India are on the growth path. With the emerging
private players, national brand manufacturers will have to compete with the competition within
the sales promotion and distribution channel, which needed to change in marketing strategy,
locally”.
(T., 2011) stated “the reasons for preference of the brands ranged from quality to availability. But
it was quality that was ranked as the No. 1 parameter for brand preference. Most of the consumers
reported that they do get carried away by advertisements sometimes but in the end, it is the quality
of the product that is a decisive factor for purchase”.
38
Recent News-
• Nestlé India Ranked Joint FIRST in ATNI’s India Spotlight Index 2020
(Nestle, 2020)
“Nestlé India is ranked joint FIRST, in the second iteration of India Access to Nutrition Spotlight
Index 2020, published by Access to Nutrition Index (ATNI) and hosted by Access to Nutrition
Foundation, an international not for profit organization. The India Spotlight Index 2020 is an
independent national assessment to measure the contribution of India’s largest foods and beverages
manufactures towards meeting the health and nutrition needs of Indian consumers.
Some of Nestlé India’s strength include its overall nutrition governance and management systems
that are comprehensive with a clear accountability structure, its pledge to reduce fat, salt and sugar
in its products, its commitment to address the affordability of its nutritious products and its
responsible marketing policies”.
39
Research and Analysis-
Research Methodology
• A questionnaire was prepared to conduct the survey
• The questionnaire was floated as a google form to capture responses from the sample and
collection of primary data.
• Analysis of the responses received.
• Conclusions had been arrived at using the response of the concerned persons and not on
questionnaire alone.
The questionnaire made was divided into two parts. Part one consisted personal questions to
capture the demographics of the participants. Part two asked questions regarding the study. The
questionnaire was prepared in such a manner that all the participants can find the questions relevant
and do not face any difficulty in understanding the question. The questionnaire was mainly
consisting of the brand awareness and factors affecting customer’s buying behavior while making
the purchase decision. We tried to know different aspect of purchases as compared to all the brands
available. This was a very crisp and short survey form but almost contained all the details about
the consumer buying habit and behavior.
Research Design
Research design refers to the procedures and methods adopted for conducting a study. It allows
researchers to hone in on research methods that are most appropriate for the subject matter and
frame the research study accordingly. An impactful research design usually creates a minimum
40
bias in data and increases trust in the accuracy of collected data. It is broadly classified into three
types as:
Source of Data
• Primary Data: - This is the data that is collected firsthand by using different techniques like
interview, questionnaire, etc. In this project, primary data has been collected by the means of
questionnaire.
• Secondary Data: - Secondary data refers to the data existing in the pre-existing domain i.e. it
refers to the data which have already been collected and analyzed by someone else. The
secondary data involved in this project has been gathered from the internet.
Tool of data collection- Due to unforeseen circumstances and limitation during the times of
covid outbreak, the data collection has been done through using Google Forms.
41
• Sample Design-
Duration of the study- this study is conducted over a period of 15 days.
Sample Size- For this study, the sample size was 150 individuals.
Sampling method- Sampling method was random sampling to ensure that the data collected
so that the population has an even chance and likelihood of being selected in the sample.
2. Posing Questions: The next step is to present the questions to the participants in the study and
collect their responses.
3. Data Collection: The next step is to collect data. Due to unforeseen circumstances and
limitation during the times of covid outbreak, the data collection has been done through using
Google Forms.
42
4. Data Scrubbing: Raw data may be collected in several different formats, with lots of junk
values and clutter. The data is cleaned and converted so that data analysis tools can import it.
It’s not a glamorous step but it’s very important.
5. Data Analysis: Import this new clean data into the data analysis tools. These tools allow you
to explore the data, find patterns, and answer what-if questions. This is the pay-off, this is
where you find results.
6. Drawing Conclusions and Making Predictions: Draw conclusions from your data. These
conclusions may be summarized in a report, visual, or both to get the right results.
43
DATA ANLYSIS
AND
INTERPRETATION
44
The survey was done for two segments. First part captured the information regarding the
demographic personal information of the participants like name, age, gender, occupation, etc.
for the users and another part consisted questions regarding the study.
The study is divided into two parts with the demographic segment of male and female to know
buying behavior of both the genders separately -
Data Analysis of the collected data revealed to following findings-
Part 1
Male Participants 73
Graduate 40
Intermediate 6
Post-Graduate 22
Other 5
Students 36
Employees 16
Businesspersons 10
Govt. employees 3
Other category 8
45
Female
Participants 73
Graduate 37
Intermediate 4
Post-Graduate 34
Other 5
Students 56
Employees 8
Businesspersons 5
Govt. employees 8
Other category 2
Part 2
Q. What type of coffee do you prefer to drink? *
➢ 62% of the male participants prefer to drink branded Tea/Cold Coffee whereas 78% of female
participants prefer to drink branded Tea/Cold Coffee. This signifies that majority of the
consumers are brand conscious.
46
Do you prefer to drink Ready to
Gender Drink Cold Coffee/tea No. of Participants
Yes 32
No 23
Male Maybe 6
Yes 43
No 22
Female Maybe 12
➢ 44% of the male participants prefer to drink RTD Tea/Cold Coffee whereas 56% of female
participants prefer to drink RTD Tea/Cold Coffee. This supports the observation during the
tenure of this internship that many customers still prefer to drink in house coffee made in
cafes which is a better value for money for them.
Q. Does brand matters to you while buying RTD products in the market?
Does brands preference matter to you
while buying RTD products in the
Gender market? No. of Participants
Yes 46
No 10
Male Maybe 5
Yes 52
No 17
Female Maybe 8
➢ 63% of the male participants and 68% of female participants said that brand affects their
decision while buying RTD Tea/Cold Coffee. This shows that majority of the consumers are
loyal to their preferred brands.
47
➢ 38% of males preferred Nescafe whereas 21% preferred Amul. Among Females, a whopping
56% preferred Nescafe while 26% preferred Amul. This clearly signifies that Nescafe is the
synonym of coffee in the minds of consumers.
➢ 48% of males and 68% of females said that packaging matters to them while buying RTD
products. This shows that females are more concerned about packaging of the product in
comparison to males while to the majority of the population, packaging matters.
➢ Majority of males with 44% preferred Glass bottle packaging followed by 27% preferring
Can. Among females, majority lies with Can with 58% followed by Glass Bottle with 30 %.
➢ This shows that Glass Bottle and can are the most attractive packaging types improves the
company’s brand equity in the minds of consumers.
48
• Where do you prefer to consume RTD Tea/Coffee?
➢ 71% males and 70% females prefer to drink RTD tea/cold coffee out of home. This
signifies that RTD products have little consumer base inside home.
49
Conclusion and Observation
From the findings of the research, it can be concluded that Packaging in an important attribute that
affects consumers buying behaviour and thus Nestle needs to provide better packaging as the
competitors are providing their products in PET Bottle and Can at lower price point where Nestle
is selling RTD is tetra pack at a higher price which becomes a turn down for consumers. Also,
packaging type enables brands to create greater impact in terms of quality of the product in the
minds on consumers and improve their brand identity.
Also, Nestle is facing a tough competition from Amul in the market, who is able to provide their
product at a considerably lower price which is enabled by its efficient distribution system.
It was observed that consumers are also become aware regarding reusability and recyclability of
the products they are consuming, and this preposition can be used by the brands to attract the
consumers.
Also, the biggest challenge that ready to drink tea/coffee products are facing in the market is not
by a competitor in organized sector but from the in house tea/coffee that are made in cafes as
consumers still considers it better value for money. Getting more quantity is what drives
consumers to opt for these generic non branded tea/coffees. Thus, companies will have a hard
time to compete this competitor just by giving a preposition of providing a branded product.
50
LEARNING EXPERIENCES
51
During the tenure of this internship, I got to perform B2B sales in the field which posed a new
challenge every day and at every other outlet. The journey of internship at Nestle was a great
learning phase for me where I was learning every minute. To make the sales and to achieve the
target one needs to give hardcore dedication and efforts for which I travelled almost 20-25 km in
a day to make sales for the organization. During the beginning of this internship, I was a
complete novice to the area of sales and this internship gave me an opportunity to enhance my
confidence, communication skills and improved my interpersonal skills. After outing my
continuous efforts, I was able to learn many important things which I can apply it for lifetime.
Those are-
• Negotiation skills
• Customer acquisition
• Customer retention
• Employee referrals
• Brand endorsing
• Branding
• Sales objective
• Sales target setting
• Target achievement
• Supply chain management
• Consumer behavior
The skills and abilities which I acquired during this time is worthwhile and I can take the same
for my lifetime to get a good experience and learning in future.
52
Questionnaire
53
Basic Details
Part 1
Please provide us with your basic details-
* Required
1. Gender *
Male
Female
2. Age Group *
40 and above
3. Education Qualification *
Matriculation
Intermediate
Graduated
4. Occupation *
Businessman
Govt. Employee
Private Employee
Student
Home Maker
Others
54
Part 2
Buying Behavior
7. What type of coffee do prefer to drink? *
Branded
Non- Branded
No
Maybe
9. Does brand matters to you while buying RTD products in the market? *
Yes
No
Maybe
Nescafe
Amul Kool
Cream Bell
Cavin’s
Other
Yes
No
Maybe
Tetra Pack
PET Bottle
Glass Bottle
Can
55
13. Where do you prefer to consume RTD Tea/Coffee? *
Out of home
At home
56
Bibliography
57
Albayrak, M. & Aslan, Z., 2001. A comparative study of consumer preferences for, s.l.: African Journal of
Business Management.
Azoth Analytics, 2019. India Food and Beverage Market: Analysis By Food (Breakfast Cereal, Savory
snacks, Dairy Foods, Ingredients, Organic food, Confectionary and bakery, Others), By Beverage
(Alcoholic, Non- Alcoholic): Opportunities and Forecast (2019 - 2024), s.l.: Azoth Analytics.
Dr.Shendge, 2012. “A Comparative Study of Consumer Preference towards Cadbury and Nestle
Chocolates with, Solapur: s.n.
Grand View Research, 2018. Ready to Drink (RTD) Tea and Coffee Market Share Analysis By Product (RTD
Tea, RTD Coffee), By Packaging Type (Canned, PET Bottle), By Price, By Distribution Channel, And
Segment Forecasts To 2024, s.l.: s.n.
India Brand Equity Foundation, 2020. Indian FMCG Industry in India Industry Report, s.l.: India Brand
Equity Foundation.
Jack & Rose, 2000. Journal of Machine Learning Research. Journal of Machine Learning Research.
Jain, M., 2012. Recent trends in vending market in India. International Indexed & Referred Research
Journal, Vol. III (ISSUE-34).
Monirul, I. M. & Han, J. H., 2012. Perceived Quality and Attitude Toward Tea & Coffee by. International
Journal of Research and Management, Volume (3)(Issue (3)).
T., V. R., 2011. “Impact of Advertising Brand on Brand Preference of Tea in Kaval Towns of Up, s.l.:
International Journal of Management annd Strategy.
58
Vakhariya S & Chopde, V., 2011. “A study of consumer preference of private labels over national labels in
apparel segment of the, s.l.: s.n.
59